Cleared Funds
Cleared funds are money that has settled in your account and can no longer be reversed. A balance that shows as paid may still be pending. A cheque can still bounce after it appears.
What it means
A payment can show in your account before it has cleared. A cheque can look like it has landed, then bounce days later and take the money back out. That deposit was never cleared funds, whatever the balance showed for a while.
The gap matters most when you hand something over after you think you are paid. That could be keys, materials or a finished job released early. Wait for the funds to clear before you treat a payment as final. This applies most to a cheque, which can still reverse after it first appears to land.
A client's $600 cheque shows in your account on Tuesday. It bounces on Friday and the $600 disappears again. The money was never cleared funds.
Handing over a finished job, keys or materials as soon as a payment appears. A cheque or a disputed card payment can still reverse after it first looked like it landed.
See also
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